Neighbors are applauding a developer's move to abandon a project that would have built a 138-unit apartment complex in Corte Madera, instead trading it for a plan to construct 46 townhouses.

Stuart Gruendl, of the Emeryville-based BayRock Multifamily company, said it hasn't been easy coming up with a plan that's acceptable to the community. He said neighbors were concerned about the initial project's density and preferred for-sale homes over rentals.

"It was thousands of dollars of reconfiguring the plan and taking it back to the community," Gruendl said. "The fact that we've now gained neighborhood support is a great thing."

In October, Gruendl met with neighbors of the Marin Gardens apartments at 1441 Casa Buena Drive to unveil his plan to demolish the residences and erect a 138-unit apartment complex on the site on the west side of Highway 101 about two miles north of the Tiburon Boulevard exit. Fearing the development would be similar to the often critiqued 180-unit apartment complex at the former WinCup site on Tamal Vista Boulevard in Corte Madera, neighbors hotly opposed the plan.

Gruendl went back to the drawing board, convening another community meeting in January to discuss an updated plan to construct a 105-unit apartment complex on the 3.5-acre site. He proposed having two- and three-story buildings, instead of having one of the apartment buildings as tall as four stories. Neighbors met the updated proposal with hostility.

Community members were especially concerned with the plan's need for the Town Council to pass a zoning amendment, increasing the allowed density on the site. The site is zoned for low-density multi-dwellings with a maximum of 10.9 units per acre — a figure that could increase under the state's density bonus law, which allows developers to build denser projects if they offer affordable housing.

With the community's outrage, Gruendl said his project was looking less and less feasible.

"When we got down to 105 rental units, it was really a threshold for the project becoming unprofitable," Gruendl said. "There was also this resounding push-back from neighbors for for-rent units."

Gruendl this month held another meeting and submitted plans with the town to create 46 for-sale townhouses in two- and three-story buildings, which will reflect a density of 13 units per acre instead of the 40 units per acre initially proposed.

He said the new plans shouldn't require a zoning change as he's only seeking a 20 percent density bonus. However, instead of actually providing those affordable housing units, Gruendl plans to propose paying about $1 million in in-lieu fees. These fees are put into an account for the town to use in support of future affordable housing development opportunities.

Townhouses would range from a 1,200-square-foot three-bedroom, two-bath unit to a 2,160-square-foot four-bedroom, three-bath home. More information can be found online at casabuenalife.com. Corte Madera planning officials have no timeline yet as to when the project might go before the Planning Commission for consideration.

Neighbor Peter Graves was opposed to the previous plans that required a zoning change, but he believes the new plan is much improved.

"The current plan conforms with the existing zoning. Because of this, I think the owners are within their rights to redevelop the property as they wish. Though the year of construction will have to be contended with, the result should be a nicely upgraded property and a boost to overall neighborhood property values," Graves said.

For neighbor John Garvey, the whole process felt a bit deceptive and he wonders if Gruendl proposed an outrageous plan in the first place in order to gain more community consensus in the end. He said the latest plan still pushes the zoning limits.

"It's not appropriate for the neighborhood. It's an awkward plan," he said.